Technical Analysis Report

14 Jul

Technical Analysis Report – 14 July 2022

/ CSFX Analytics

FRESH EARNINGS, INITIAL JOBLESS CLAIMS AND PPI DATA WILL RIDE THE MARKET

Asia Pacific stocks were mostly up on Thursday morning. The Shanghai Composite is down 0.23% at 3,276.45. Overall, the Singapore MSCI is down 1.31% at 282.50. Over in Hong Kong, the Hang Seng Index is down 0.86% at 20,652. In Japan, the Nikkei 225 is up 0.79% at 26,640.00, while the Topix index is up 0.19% at 1889.00. South Korea’s Kospi is up 0.02% at 2,329.13. Australia S&P/ASX 200 up 0.37% at 6646.00.

Top News of the Day:

U.S stock futures traded lower during Wednesday’s evening deals, following a negative close for major benchmark indices after a hotter than expected CPI print, with inflation surging to fresh 41-year highs, while investors look ahead to earnings reports from major financial companies.

Ahead in Thursday’s session, market participants will be monitoring fresh earnings reports from JPMorgan Chase & Co (NYSE:JPM) and Morgan Stanley (NYSE:MS), while weekly initial jobless claims and PPI data will also be closely watched.

Market Summary as per 13/07/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 1.16% at 12,756.32, CAC 40 futures down 0.73% at 6000.23 and the UK 100 futures contract in the U.K. down 0.74% at 7,156.38.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.67% at 30772.80. The S&P 500 down 0.45% at 3801.77 and the Nasdaq 100 down 0.14% at 11860.28, NYSE closes down 0.38% at 14340.28.

Top Market News Today:

In the Forex market, GBPUSD down 0.36% at 1.1834. The USDJPY up 0.89% at 138.441. The USDCHF up 0.33% at 0.9819. EURUSD down 0.28% at 1.0024, EUR/GBP up 0.08% at 0.8463. The USD/CNY up 0.19% at 6.7311 at the time of writing.

In the Commodity market U.S. Gold futures down 0.60% at $1,724.10. Elsewhere, Silver futures down 0.86% at $19.010 per ounce, Platinum down 1.23% at $841.50 per ounce, and Palladium down 0.66% at $1969.00.

Crude Oil down on Thursday; Brent Crude Oil down 0.31% at $99.37 per barrel while U.S. West Texas Intermediate (CLc1) down 0.45% at $93.58.

In the Cryptocurrency Markets, Bitcoin at 20025.00 up 2.09%, Ethereum down 1.39% at 1099.49, Litecoin at 48.95 down 1.19%, at the time of writing.

Top Market Segment to Watch Out Today:

Ericsson: Ericsson (BS:ERICAs), the Swedish telecoms equipment firm which is facing bribery investigations, reported a rise in second-quarter core earnings on Thursday but missed expectations as margins were hit by increased component and logistics costs.

Economic News:

US: Growing signs of a slowdown in economic activity stoked worries about a recession on the horizon as “substantial” inflation continues to put the squeeze on U.S. consumers, according to the Fed’s Beige Book released Wednesday.

The central bank’s Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through July 13, showed that while economic activity “expanded at a modest pace, on balance, since mid-May,” several districts flagged signs of slowing demand, and “contacts in five Districts noted concerns over an increased risk of a recession.”

The fresh signs of slowing demand come as inflation continues to run hot unabated, with “substantial price increases” reported across all districts, according to the report. There were some positive signs that inflation could moderate, in particular for construction inputs such as lumber and steel, which saw a moderation in prices in three-quarters of districts.

The U.S. consumer, however, which accounts for about two-thirds of economic growth, had moderated spending as “higher food and gas prices diminished households’ discretionary income,” most districts reported, according to the report.

Eurozone: The European Commission has predicted record levels of inflation and slashed its GDP forecast for 2022 and 2023 as a result of Russia’s invasion of Ukraine, crimped demand due to surging prices and the danger of winter energy shortages, Bloomberg News reported on Wednesday.

The Commission now expects inflation to jump 7.6% in 2022, higher than its May estimate of 6.1% for the year. It also expects inflation to rise 4% next year from May’s forecast of 2.7%, Bloomberg said, citing a draft from the European Union executive arm. The Commission’s forecasts are set to be unveiled on Thursday.

Inflation was estimated in May to be 6.1% for this year, which was in itself a major rise from the 3.5% estimated before the invasion of Ukraine.

On Monday, euro zone finance ministers said the fight against inflation was the current priority despite dwindling growth in the bloc, as they were informed of a deteriorating economic outlook by the European Commission.

Top Economic Releases Today:

U.S. Initial Jobless Claims today at 8:30 this time estimated 235K, previously which was 235K.
CANADA Manufacturing Sales (MoM) (May) today at 8:30 this time estimated -2.00%, previously which was 1.70%.
CHINA Industrial Production (YoY) (Jun) today at 22:00 this time estimated 4.10%, previously which was 0.70%.
RUSSIA Central Bank reserves (USD) today at 9:00 previously which was 586.80B.
SWITZERLAND PPI (MoM) (Jun) today at 2:30 this time estimated 0.90%, previously which was 0.90%.